# Shared Flashcard Set

## Details

S14.3 - Multiple Regression
Multiple Regression
13
Mathematics
11/21/2013

Term
 Multiple regression model
Definition
 Using more than one explanatory variable to predict the value of a response variable
Term
 Multiple regression model =
Definition
 yi = B0 + B1x1i + B2x2i + … + Bkxki + ei
Term
 Correlation matrix
Definition
 Shows the linear correlation between each pair of variables under consideration in a multiple regression model
Term
 Multicollinearity
Definition
 A relationship that exists between two explanatory variables if they have a high linear correlation
Term
Definition
 The effect of x1 on the value of the response variable does not depend on the value of x2
Term
 Multiple regression, F0 =
Definition
 MSR/MSE
Term
 Multiple regression, F0 using R^2 =
Definition
 R^2/(1-R^2) x [(n-k+1)/k]where k is the number of explanatory variables
Term
 Decision rule for hypothesis testing, multiple regression
Definition
 If P < alpha, then reject the null
Term
 1. Guidelines in developing a multiple regression model
Definition
 Correlation matrix to identify explanatory variables that have a high correlation with the response variable
Term
 2. Guidelines in developing a multiple regression model
Definition
 Use all explanatory variables that have been identified by the researcher
Term
 3. Guidelines in developing a multiple regression model
Definition
 Run regressions, one by one removing variables with small t-statistics and high p-values
Term
 4. Guidelines in developing a multiple regression model
Definition
 Repeat step 3 until all slope coefficients are significantly different from 0
Term
 5. Guidelines in developing a multiple regression model
Definition
 Draw residual plots to see if the model is appropriate
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